US Economy Stalls with Sluggish 1.5% Growth in Q2

The US economy grew at a sluggish rate of 1.5% in the second quarter of 2026, according to recent reports. This growth is significantly lower than the 2.7% expansion seen in the previous quarter. The slow pace of economic growth is attributed to various factors, including high inflation and rising gas prices.

As of July 23, 2026, the average price of gasoline across the US was around $3.25 per gallon, which is a substantial increase from previous years. This surge in fuel costs has put pressure on consumers and businesses alike, affecting their spending power and overall economic activity.

Despite these challenges, Federal Reserve Board Chairman Kevin Warsh expressed optimism about the economy's prospects during a news conference on July 29, 2026. He stated that while inflation remains high, it is expected to ease over time as the economy adjusts to changing circumstances.